FLNG - Offshore Assets Development , Korea 2010 Sampe Purba

CURRENT OFFSHORE GAS
ASSETS, DEVELOPMENTS &
POTENTIAL for FLNG
DEVELOPMENT
Sampe L. Purba
VP Program and Budgeting PSC
BPMIGAS – INDONESIA
slpurba@bpmigas.com

2009 © BPMIGAS – All rights reserved

Agenda
• OVERVIEW OF OFFSHORE GAS
RESERVES : SHALLOW, DEEPWATER
AND STRANDED
• GAS RESOURCE ALLOCATION
• ACHIEVING SYNERGIC COOPERATION
AND BUSINESS PARTICIPATION
• PERSPECTIVE ON FLNG
TECHNOLOGY AND DEVELOPMENT
• Concluding remarks

SEDIMENT BASINS SPREAD ACROSS THE COUNTRY
SOUTH CHINA SEA

N

NATUNA


IRIAN JAYA

JAWA

BASINS WITH OIL & GAS PRODUCTION (14)
BASINS WITH DISCOVERY (7)
BASINS DRILLED (15)
BASINS NOT YET DRILLED (24)


EXPLORATION AND EXPLOITATION BLOCKS ACROSS THE COUNTRY

Country’s Gas Reserve(3P) Map

5.55

52.15

1.26

10.57

21.78
23.71

2.69

17.74

3.68

EAST JAVA
5.29

Land = 68.56 TCFG
Sea :
Shallow = 23.71 TCFG
Deep Water = 15.22 TCFG
Stranded = 52.15 TCFG

15.22


Our Treasures
Country’s Gas Reserves

Gas allocation shown

Lifting Oil
4.99%


Ekspor
44.54%

Own
Use+HSE
Flare
16.82%
Ekspor
44.54%

Domestik
55.46%

Pupuk
Fertilizer
7.94%
7.94%

Listrik
Power
10.24%
10.24%

Manufactur
Industri
13.61%
e
13.61%

Domestik
(LPG)
1.84%
Industri CO2
0.02%

9

National Gas Supply Management Policy model
• Objective:
• to improve the economics of marginal gas development
• Implementing Gas Domestic based on accessibility to the consumer’s market

International
market with higher
price


Domestic market

Small and marginal
field

Supply gas
Revenue

Development of
small and marginal
field

Major field with
economics reserves

Export to domestic price
difference
1. DMO volume to
Contractor
2.Some to Govt
Entitlement
10


Host Government Perspectives

National
Resource
allocation

Development
Local
scenario and
Business
Technology Synergy and
Options
Participation

12

National Resource allocation
Domestic

vs

Export

• Security of domestic supply and industrial feedstock
• Hunting and securing hard currency

Transforming the national industry


• Increasing added value for sustainable development
• Degree of Participation in LNG chain :
subsurface, extracting, liquifaction,shipping, regasification
• Accelerating and stimulating supporting manufacture

Regional and National Geo Economics Strategy
• Safeguarding and enhancing geographical border
• Participation of National or State Owned Company in border line
fields

13

Local Business Synergy, Contribution and
Participation >> comprehensive growth
SWAP for captive market
• Barter for domestic shipyard contract
• Alliance with domestic manufacturing company
• DMO swap inter Corp


Local contents
• Local logistic base
• Training ground for national employees
• Community Development and corporate social responsibility

Supporting services
• National Banking involvement in intermediaries and transaction
• research center
• Insurance and financing

14

Regulatory aspect
• Domestic market obligation (DMO)
Allocation and • Pricing and commercial aspect
commercial • Taxation, remittance, banking
aspect


Technical and
operational
aspect

Legal aspect

• Reserve confirmation, drilling, processing and shipping
• Health, Security and Environment

• Ownership and legal status of FLNG
• Schematic arrangement as downstream or upstream
expansion
• Will it be categorized as storage or ship ?

15


Risk from Government or Host
Country Perspectives
• Mostly are ignored as too blurry to
measure in exact monetarywise
• Pressure to get ease the burden of
economy
• Low added value in economy chain
• Importing dominant player to your yard
Risk as Octopussy effect, almost cul de sac and entering point of no
return
16

17


INVESTOR’s Perspective
Sanctity of
Contract

Maximation of
Return of
Investment

Technical and
commercial
Aspect

Enhancement to
its global
position
•Capitalizing and
mobilizing HQ
resources (e.g
Technical, R &D,
global supply
chain)

Major changes of
circumstances and
Squaring
mechanism

•Size of FLNG
•Hull and top side
design and lay out
•Liquifaction
technology

•Integration line
of business
(FEED – Project
– Upstream –
downstream –
support services)


Hurdle rate
Sanctity of contract competition
vs Flexibility
among global
portfolios

• required
reserves
•Subsurface
property
characteristics

Concerned over
Opex – Capex
not to over run

Excercise
Long term
inalienable rights in operational
the name of
investment

• shipping arrg’mt
•Receiving
•Higher bargain
terminal
position across its
•Commercial deal peer


Alignment of interest

Profit and
economics

People
Welfare

Profit and
welfare

To balance the interest of parties involved

19


Agenda
• OVERVIEW OF OFFSHORE GAS
RESERVES : SHALLOW, DEEPWATER
AND STRANDED
• GAS RESOURCE ALLOCATION
• ACHIEVING SYNERGIC COOPERATION
AND BUSINESS PARTICIPATION
• PERSPECTIVE ON FLNG
DEVELOPMENT
• Concluding remarks

Development Scenario and
Technology Options
Utilizing stranded gas reserves from remote areas
• On shore or pipe line transfer
• FCNG
• FLNG

Development Scenario


• Full scale
• Partial, sequental stages
• Early Production to confirm reserve and technology

Technology issues
• Proven or newly applied technology
• Patent for technology

21

Capex Estimate
5%
14%


81%

Sub Sea Prod Syst
FLNG
Logistic Base

FLNG Project cost COMPONENT

21.29%

25.00%
20.00%
13.76%

15.73% 15.29%

16.92%

15.00%
10.00%
5.00%


0.00%

4.55%

5.00%
3.15%

4.32%


Concern on the FLNG
• Liquefaction process in open and high
volatile sea
• Viability and safety margin of loading LNG
at sea (need mooring system to stabilize
Plant ship/barge)
• Loading of LNG and LPG to transport ship
carrier (vertical and lateral movement of
the sea – winds, current, wave)
• Operational and flexibility to deal with inert
gas (CO2) or corosives(SO2)


http://www.bakerinstitute.org/programs/energyforum/publications/docs/NewEnergyTechGasSectors_EvolutionofMarkets.pdf/view?searchterm=floating%20LNG%20technology

25

The prospect indication of Floating Production System as per 2009


This figures are indication, some
of which are still under study

26

Latest dev’t in FLNG
Project to – be : Masela
Inpex

•
•


•

•
•

The first gas discovery in
Arafura Sea, Indonesia
Gas reserves est 6 – 9
TCF
Remote location, no
major gas market &
infrastructure (150 Km
from Tanimbar island,
500 km from Aru Island
Water depth 400 – 800 m
Expect to be first LNG
Project in Southern East
Indonesia


Excerpts
from corp.
website

28

When size matters
USS Blue Ridge (LCC -19)
Flagship, US Seventh Fleet

FLNG , 1 x 4.5 MTPA

Length 194 m, beam 32.9
m

Length 500 m, width 82 m

Football yard – as per FIFA standards :
Length 100 – 110 m, width 64 – 75 m
29

Natuna : FLNG >> one- of the
potential dev’t scenario

Ratchab
uri

Rayo
ng
Cambod
ia
Eraw
an

•

•


•
•

Giant Reserves 222 TCF,
high CO2 dry +/- 70%, or net
reserve recoverable gas +/46 TCF
to considerRemote location,
no major gas market &
infrastructure
Water depth +/- 145 m
Gas Pipe line, FLNG or land
base LNG Plant open
Distance from Natuna to Potential
Markets
–
–
–
–
–
–
–

Natuna Island
National Border
Bintulu
Kerteh
Batam
Jakarta
Rayong

225 km
520 km
450 km
790 km
880 km
1,340 km
1,540 km

Vietna
m
JDA
M

Aru
n
Kerte
h GP
P

-T
Border
Wes
t
Natun
a M -I
Bord
Natun
er
a
Islan
d

Singapo
re Bata
m

0

20
0

40
0

Existing
P/L under
construction
Potential
P/L

60
0

K
M

Jakar
ta

Natuna
D
Alph
a

Bintul
u

Challenge for F/ LB LNG Plant


• Technonolgy and Commercial
Challenge
• Volume of Production , Plateau period and
life time (need to have reasonable
certainty ahead of developing scenario
• Location : Remote and almost in the middle
of no where
• High CO 2 content for removing and
treating
• High Capex required to develop fields,
treating production and marketing of gas
• Required abundant volume of gas

• Logistics Challenge
• LNG Plant Site
 Pipeline Coridor
Liquefaction Trains
Storage Tanks
Loading terminal
• Marine Base
Jetty for berthing/offloading
Storage for drilling materials
General bulk Storage
Laydown / work areas
Assembly of steel risers
Accomodation
• Airport
Fixed wing operation
Helicopter operation
Communication center
Accomodations
Medical facilities

FLNG sub components

Concern

FEED Gas Receiving System Capacity to separate feed gas, condensate and produced water,
and temporarily materials without interruption operations
Gas Processing system
Liquifaction Processing
system

Acid gas removal unit, dehydration unit, mercury removal unit,
booster compressor as necessary
Safety and reliability, technology risk, engineering design,
operability, thermal efficiency, environmental considerations

Condensate Process system Separate light component, control vapor pressure


Water Process System

To lean, reclamate, recycle and reinjection at acceptable stdrd

Products Storage & Loading
systems
Hull & Mooring System

Storage for LNG and condensate product and designing the
efficient and safe offloading system
Suitable to storage LNG, condensate, chemical and machinery
rooms
Power generators, fuel, steam and cooling sisytem, instruments,
fire protection systems etc.
Control rooms, maintenance, accomodations, authority and
security,recreational, heli deck ect

Utility systems
Living Quarters

32

Concluding remarks
More of petroleum reserves are laid in remote and deep sea


 To monetize and economize it is technical and economical
consideration
 FLNG is one of alternatives to free and utilize stranded reserves

While such challenges can be well tacled and responded from business
perspectives, the host Government measure things far more and beyond
direct economic project consideration
per se

34


Achir’ul kalam

• Thank
you
• Terima
kasih
• Maturnu
wun
• Merdeka
slpurba@bpmigas.com
• Horassss

Brief CV
Mr. Sampe L. Purba, born in 1963, currently holds position as Vice President for
Program and Budgeting Management of PSC in BPMIGAS, a state legal owned
institution supervising and managing all Production Sharing Contracts operating in
Indonesia. His job mainly deal with management assessment of program, commercial
and financial aspects of oil and gas business. He also deeply involves in evaluating
of Project Finance dealing with international financial institution, LNG Project
Finance, Taxation and Risk management matters.

•


•

Mr. Purba got his degree in Economics more than twenty years a go from The
University of North Sumatera. He also holds a State Registered Accountant, and Post
graduate degree in Finance – Commerce from The University of New South Wales
and also completing his Business Law degree from a leading university in Indonesia.
Mr. Purba attended also short course in National Resilience Institute to equip and
broad his spectrum and perspectives in managing natural resources. Currently, Mr.
Purba pursues his study on post graduate in diplomacy and business negotiations

•

As part of maintaining and updating his knowledge and sharing of experiences, Mr.
Purba actively attends and delivers workshop, conferences and seminar domestic
and abroad. He is an active members of Indonesia Accountant Association,
Indonesia Petroleum Society and Association of International Petroleum Negotiators.

Okt-13

36

FLNG - Offshore Assets Development , Korea 2010 Sampe Purba

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